porting my mortgage

Mexas

Hi All, In need of some advice please.

I currently have £64.5k mortgage on an house I've just sold for £155k. Our new house is £125k and I've asked my bank (Santander) whether it would be ok porting my existing product. Everything seemed ok with the first adviser but now its been passed on to the next stage i'm starting worry as the application is quite detailed (for obvious reasons). My main concern is they will reject my application as not affordable as i only have about £200 spare cash every month (after all living costs etc).

Another issue is i have £5k car loan and a £5k credit card and the repayments total £350 per month. Not massive by any stretch but could look like i'm bad with money. I was probably too honest with my application and i didn't include my OH's rent as i didn't want them to confuse it with a BTL mortgage.

After the sale, i will have approx £28k cash which i was going to use £5k to pay off the credit card.

My annual salary is £24850 before tax.

I'd rather port the mortgage as the ERC is £2k!

How much disposable income would look favorable to the bank?

amnblog

We have no way of knowing if Santander would consider your new mortgage is 'affordable' without having all the figures.

If your mortgage size is not increasing the bear figures look ok assuming a reasonable mortgage term.

Santander always calculate affordability based on the current situation and make no allowance for any debts you intend to repay on purchase, before purchase, or after purchase.

Mexas

Fair enough, on the new application I put the term as 18 years, which follows on with the current mortgage. This cost me £400 a month. Perhaps i should have put 25 years but for some reason at the time I thought I needed to make it the same as my current mortgage term.

Thanks for clearing that up regarding the debt.

What would you advise on the rental income side, can I tell Santander that my OH pays me £200 "rent" a month? I've read some stories on here where people have been refused as it appears that the mortgage is a BTL.

amnblog

Ignore your OHs finances for a single application.